Sony tried to convince Apple to adopt the Cell processor, but Apple CEO Steve Jobs rejected such overtures, the New York Times reports.

Sony's PlayStation guru Ken Kutaragi tried to sell Jobs on Sony's Cell processor. However, Jobs rejected the idea, saying he was "disappointed" with the Cell design.

The New York Times adds that Jobs "believes Cell will be even less effective than the PowerPC".

There's everything to play for, the report states that: "Many people in the industry believe that Mr. Jobs is racing quietly toward a direct challenge to Microsoft and Sony in the market for digital entertainment gear for the living room."

The report also explains that Jobs left IBM hanging until the eleventh hour. The famously brash CEO didn't tell IBM of Apple's plans until 3pm on June 4 - scant days before he told the world.

Jobs is reported to be "still committed to the idea of an Apple culture," as the "counterculture to the dominant Windows culture."